As we know Australia is the China's biggest trade partner, but in China, the trade data evidenced drop in exports by 25.4% in February on YoY terms, which is well below the 12.5% drop forecasted.
And imports declined by 13.8%, also below the 10% drop seen for a trade balance surplus of $32.59 billion, far short of the $50.15 billion expected.
China trade surplus printed at USD 32.59 billion in February of 2016, narrowing gruffly from USD 60.61 billion reported a year earlier and missing market consensus. It is the smallest trade surplus since March 2015, as exports and imports fell worse than expected.
We suppose that this slump in export majorly mirrors seasonal distortion due to annual shifts in the timing of Chinese New Year.
As a result, Aussie dollar dropping away against currency majors to give up recent gains further as key trade partner China reported gloomy February trade numbers, though the Chinese New Year holiday slowdown was a key factor.
Although AUD/USD managed to pull back its earlier losses during European sessions, now still hovering below yesterday's highs of 0.7484, currently traded at 0.7462, EURAUD continued to drift lower by 130 pips from day highs of 1.4893, while AUDJPY also dropped from yesterday's highs at 85.014 to the current 84.403, the safe-have yen gained with USD/JPY down 0.46% to 112.93.
